Auto Calculate or Manually Enter Trade Data
- Copy Page Tree (Unlicensed)
- Nancy Cohn (Deactivated)
The Book Trade tool displays different panels depending on the type of security and transaction you are processing.
Process Fixed Income Securities
The panel for fixed income securities displays the Select Values to be Calculated by STAR field. This field determines whether the system automatically calculates the trade data or allows you to enter it manually.
The following are the options for the Select Values to be Calculated by STAR field:
Traded Interest/Amort Yield/OID Yield/Trade Yield
Traded Interest/OID Yield/Trade Yield
Amort Yield/OID Yield/Trade Yield
Traded Interest/Amort Yield/Trade Yield
Traded Interest
Amort Yield/Trade Yield
OID Yield/Trade Yield
Calculate None
Suppose you select the Traded Interest option. The panel populates the trade panel with the interest bought or sold based on options specified for the security master record, such as the last coupon date, day count method, and coupon rate, as well as the par and the settlement date of the transaction.
Suppose you select the Calculate None option. You have the option of entering the traded interest manually, or leaving the value as zero.
If the value you entered manually in the Traded Interest field does not equal the value that the system calculates, the system will "true up" the period-to-date income upon the initial income accrual to the lot. For example, suppose the system calculated $15,576.920 and you manually entered an amount of 555.000. Not only will the system accrue the one day accrual amount, but also the difference between the system calculated interest and the manually entered traded interest.
Process Mortgage Backed and Factor Based Securities
The panel for mortgage backed and factor based securities displays the Current Face field.
The panel performs a lookup to extract the most current factor based on the settlement date of the transaction. The panel uses the factor to calculate the current face of the transaction. You may only enter a value in the Original Face field. The system locks the Current Face field, as shown in the example above.